Saudi Gazette report

RIYADH — Saudi Arabia ranks first in the Arab Index for capital markets, according to Abdulmajeed Alhaqbani, Head of the Securities Investments Department at the Public Investment Fund (PIF).

Speaking during a panel at the 9th edition of the Future Investment Initiative (FII9) in Riyadh, Alhaqbani highlighted the Kingdom’s position as the region’s largest and most liquid market, underscoring its growing appeal to global investors and asset managers.

“The two main factors are size and liquidity. It’s number one when it comes to market size and liquidity,” Alhaqbani said, citing the S&P Arab Index as a benchmark reference.

He noted that Saudi Arabia accounts for over 239 companies out of 500-plus listed in the index, with a liquidity weight exceeding 60% and a total index weight of 73%.

Highlighting the market’s strong performance, Alhaqbani said the free-float market capitalization rose from SR1 trillion in 2019 to SR2 trillion in 2024, while the number of listed companies increased from 199 to more than 260.

He added that Saudi Arabia’s market weight in global indices grew from 2.8% in 2018 to 3.5%, while annual market liquidity nearly doubled from SR880 billion to SR1.8 trillion.

On the development of Exchange-Traded Funds (ETFs), Alhaqbani described them as “the windows and doors to the Saudi capital market,” noting that Saudi Arabia now offers 12 ETFs across multiple asset classes in four countries.

He also pointed to the rise in Qualified Foreign Investor (QFI) holdings from SR338 billion to over SR400 billion, describing it as evidence of growing international confidence in the Saudi market.

“The evolvement in the market is becoming amazing,” Alhaqbani said.

“The attractiveness of the Saudi capital market and transformation is moving to a next level in the upcoming future.”